Weekly detailed analysis of world shipping freight markets for all major routes for May 30- June 05, 2011
Capesize (Atlantic and Pacific)
Another positive week, although bit limited by the holiday on Monday 30th May and the Assumption day in most European countries the 2nd June. The Baltic Capesize Index gained 118 points and the average of the 4 TC routes $ 1,498 with the Atlantic sector which was particularly in a positive mood in Nothern Europe where a MOSK fixed with K.Line a modern Cape with delivery mid June in Continent for a trip via Baltimore and redelivery Japan at a firmer $ 26,000 daily. The Pacific have been much more active, but rate levels remained pretty static and this was due to the large amount of tonnage, as usual, open in such area which is still great.
Panamax (Atlantic and Pacific)
The market turned quiet in the end of the week due to the holiday in Europe and the coming holiday in East Asia. From the Atlantic side, South American grain biz turned slow and trip to the East was being talked at $25,000 plus 500,000bb or even less while rate for biz within the Atlantic was still a little firm with $15,000 for TA round and $16,000 for Baltic round. There was limited activity in the Atlantic at the end of the week due to the holiday and coming weekend.
In the East, market kept almost unchanged. There were still some cargoes supporting the market. Good lme in CJK could gain $14,000 for an E. Aussie/Japan trip and Nopac was at mid $13,000 level or even more for Japan positioned vessel. There was some need for short period but rate was also kept unchanged at $13,500 to $14,000 level.
Handy (Far East/Pacific)
Last week's optimism rapidly faded away due to a reduced chartering interest that pushed Supramax rates down. Trading from North Pacific ended up into a soap bubble and the little activity for the larger Handies was limited to spot business for loading ex South East Asia and a very limited trade ex Australia. At the end of the week it was rumored that a Supramax delivering at North China for a South East Asia round was agreed at Usd 9.500. No reports were available for smaller Handies which so far were described as suffering less the downward trend.
Handy (North Europe/Mediterranean)
A little more activity out of Black Sea showed pretty lousy rates agreed with a 25 years old, large Handy accepting very low money for a trip into the Persian Gulf. As low as what was paid for a small Supramax to load from same area cement to West Africa. A Supramax taking a trip with steels from Black Sea to Far East showed that timecharter rate for this direction are unchanged considering the coal trading and the afterwards negative position. With Russia walking out of the Black Sea grain export ban expected to come in place by next July there are high expectations for this market due to around 20 million tons of grain to be exported. Also short period rates for tonnage delivering in Mediterranean waters were stable even though no fresh activity was reported out of Northern Europe.
Handy (USA/N.Atlantic/Lakes/S.America)
The positive trend in US Gulf, especially for Supramax, resisted throughout the weekend, and is still showing nice rates both for Transatlantic and East bound business. The holidays observed by several western countries affected the activity and brought some weakness to rates available for South American loading business, while tonnage shortage in US Gulf allowed owners to keep fixing at previous levels.
Handy (Indian Ocean/South Africa)
Some more interest was seen around the hot briquetted iron and direct reduced iron export from Arabian countries. There is still some more business to be finalized that may lead to a larger demand for Handies in this area during summer months. Indian iron ore export again slowed down with only one fixture reported concluded on la large Supra.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it